In the basic Keynesian model, a tax increase:
A. increases short-run equilibrium output.
B. reduces potential output.
C. increases potential output.
D. reduces short-run equilibrium output.
Answer: D
Economics
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In the Harrod-Domar growth model, if 12.5% of income is saved, the incremental capital output ratio is 2.5 and the rate of depreciation is 4%, what is the implied rate of growth?
What will be an ideal response?
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Income elasticity of demand is greater than zero for all of the following except
a. restaurant meals b. beer c. owner-occupied housing d. food e. rental housing
Economics